What changed in the 2010-2011 academic year?
The University currently processes Federal Stafford, Federal PLUS, Grad PLUS loans through the Federal Family Education Loan program, in which students and parents borrow from private lenders and banks. Beginning on July 1, 2010, the University participates *exclusively* in the William D. Ford Federal Direct Loan program, in which borrowers obtain loan funds directly from the U.S. Department of Education.
Why did the University change its loan process?
On March 25, 2010, the U.S. House of Representatives and the U.S. Senate passed the The Health Care and Education Affordability Reconciliation Act of 2010 ("HCEARA"-H.R. 4872) . This bill makes major changes in several federal student aid programs AND mandated that, effective July 1, 2010, all federal student loans (Stafford, PLUS, and Grad PLUS) will be originated through the Federal Direct Loan Program. The Family Federal Education Loan Program, which permitted private lenders to originate these loans, was eliminated effective June 30, 2010.
"What do I have to do to get my loan funds for next year?"
- As in prior years, you must:
- Complete the FAFSA (Free Application for Federal Student Aid),
- Provide any documents requested by our office.
- Accept or decline your federal student loans on your award letter.
- Complete an Entrance Counseling Sessiononly new direct loan borrowers must complete the entrance counseling session.
- You will then have to complete a new Master Promissory Note for the Direct Loan program before the Department of Education will electronically disburse your funds to Louisiana Tech University.
"What can I do now to get a head start?"
All Louisiana Tech University students who are borrowing for the first time will need to complete an Entrance Counseling Session. You will also have to complete a direct loan Master Promissory Note (MPN).
"Can I complete the new Direct Loan Stafford MPN now?"
- Yes, you can.
New Borrower's Information:
Many students rely on federal government loans to finance their education. These loans have low interest rates and do not require credit checks or collateral. The federal loan for students is called the Stafford Loan and is under the William D. Ford Direct Loan Program.
Stafford loans are available for students meeting certain qualifications. If you're a regular student enrolled in an eligible program at least half-time (4 hours-undergraduate or 3 hours-graduate) you may receive a Federal Direct Stafford Loan. You will automatically be considered for a Stafford Loan(s) if you have eligibility. See below for additional information for new borrowers.
- Stafford Loans - Subsidized
- Stafford Loans - Unsubsidized
- Annual Loan Limits
- Stafford Interest Rates
- Borrower's Rights and Responsibilities
- Borrower's Tips for Success
- Stafford Entrance Interview
- Stafford Master Promissory Note
Repaying Your Student Loan:
After you graduate, leave school, or drop below half-time enrollment, you have a six-month grace period before you begin repayment.
- Stafford Exit Interview
- Loan Consolidation
- Deferment Options
- Discharge/Cancellation Provisions
- Forbearance Options
- Military Service
- Repayment Terms